2013 Florida Land Trust Law
- Category: Florida Regulations
- Created on Thursday, 13 June 2013 10:48
- Published on Thursday, 13 June 2013 10:48
HOUSE OF REPRESENTATIVES - FINAL BILL ANALYSIS
CS/CS/HP 220 passed the House on April 26, 2013. The bill codifies certain provisions already in use by practitioners regarding land trusts, and distinguishes a land trust by the limited nature of the powers of the land trustee.
A land trust is a form of ownership of real property in which a trustee holds legal title to the land and a beneficiary retains the power of direction over the trustee and thus retains the power to direct the trustee to sell or mortgage the real property. A land trust is primarily defined by language in the deed to the trustee which allows third parties to rely upon the ability of the trustee to transfer the property without inquiry into the consent of the beneficiaries. Because of its singular nature, there are laws applicable to other trusts which have no usefulness in the area of land trust law. Further, the standard of practice in this area has not been codified, but rather has been pursued by reference to legal treatises and Illinois law, under which the original land trusts were established. This bill:
- Better defines the dfference between a land trust and a general trust, defining a land trust by the largely ministerial duties of the trustee.
- Codifies in the Florida Land Trust Act a number of land trust practices commonly used in Florida and Illinois and derived from judicial precedents or land trust treatises.
- Includes improvements based on the experience of Florida land trust practitioners that are intended to facilitate and encourage the use of land trusts in Florida real property transactions.